Delhi High Court Slams Railways for Delaying Regularisation of Low-Paid Commission Vendors and Bearers

The Delhi High Court on Tuesday delivered a sharp rebuke to the Indian Railways for forcing low-paid commission vendors and bearers to litigate for decades to secure their employment rights. A Division Bench comprising Justice C. Hari Shankar and Justice Om Prakash Shukla dismissed two writ petitions filed by the Union of India challenging a 2016 order of the Central Administrative Tribunal (CAT) that directed the regularisation of these workers. The Court directed compliance within four weeks and warned of revived contempt proceedings if the Railways failed to act.

The case concerns commission-based vendors and bearers employed by the North Eastern Railway, who had been seeking regularisation of their services since the 1970s. The Bench expressed “deep regret” that Group-D employees drawing “paltry wages” had been compelled to litigate for decades despite repeated directions from the Supreme Court. “It is time that Courts protected the interests of the weaker sections of the society and persons drawing paltry wages, so as to ensure that the socialist structure of our democracy – which is a preambular goal – remains intact,” the Court observed.

Background: A Long History of Unfulfilled Promises

The dispute traces back to a Railway Board circular dated December 13, 1976, which envisaged registering commission vendors and bearers based on length of service and progressively absorbing them against regular vacancies. Despite this policy, the Railways failed to implement it, leading to litigation that reached the Supreme Court. In 1987 and again in 1997, the Apex Court issued directions for regularisation and payment of benefits to similarly placed workers. The 1997 order specifically mandated that until absorption, workers should be paid the minimum of the revised pay scale along with applicable allowances.

In 2005, the Railway Board issued another circular directing regularisation of all commission vendors and bearers with complete relaxation of educational qualifications. Yet, the respondent workers were forced to approach the CAT again in 2013–2014. The Tribunal allowed their applications, ordering regularisation within 90 days, payment of minimum pay scale and allowances from November 14, 2000, and imposing costs of ₹1 lakh on the Railways. The Union of India challenged this order before the High Court.

Court’s Reasoning: No Room for Screening or Delay

The High Court firmly rejected the Railways’ contention that only those found eligible through a screening process could be regularised. The Bench held that the 1976 circular and the Supreme Court’s orders left no doubt that all commission bearers and vendors in service at the time of those judgments were entitled to regularisation. “It is not disputed, before us, that all the respondents would fall within this category,” the Court noted, adding that there was no question of the Railways subsequently resorting to a screening process to eliminate any of them.

The Court also found it “very disturbing” that the Railways failed to substantiate its claim that several workers had already been absorbed as Group-D employees. During proceedings, the Court had directed the Railways to file an affidavit detailing benefits paid to regular employees versus the respondents, including retiral benefits. Instead, the Railways filed an additional affidavit stating that unregularised commission vendors were not entitled to retirement benefits available to regular employees. The Bench observed: “One would expect the Railways to display candour both before the Tribunal as well as before this Court.”

Given this lack of substantiation, the Court said it was inclined to accept the respondents’ assertion that none of them had been regularised despite repeated judicial orders. “We find no case, whatsoever, to interfere with the impugned judgment of the Tribunal,” the Bench concluded.

Costs and Contempt: A Lenient Approach

The High Court also addressed the ₹1 lakh costs imposed by the CAT. While noting that the Tribunal had “erred on the side of leniency,” the Court stated that it would have been inclined to enhance the costs but hesitatingly refrained from doing so. The Bench directed compliance with the entire Tribunal order, including payment of costs, within four weeks. It further ordered that if the Railways failed to comply, the CAT should revive contempt proceedings—which had been kept on hold during the pendency of the writ petitions—and take them to their logical conclusion.

Legal Implications: Protecting the Weakest in Public Employment

This judgment reinforces the principle that public sector employers cannot indefinitely delay the regularisation of low-paid workers who have rendered long and continuous service. The High Court’s reliance on the “socialist structure” of the Constitution’s Preamble signals that courts will actively intervene to protect vulnerable sections from administrative inertia. The decision also underscores the importance of candour before judicial forums; the Railways’ failure to provide evidence of absorption undermined its own case.

For legal practitioners, the case highlights the binding nature of circulars and Supreme Court directions on regularisation. The Court’s refusal to allow a screening process after decades of inaction sets a precedent that employers cannot introduce new eligibility criteria to exclude workers who were covered by earlier policies. Additionally, the threat of contempt proceedings serves as a powerful tool to enforce compliance with tribunal orders.

Impact on the Railways and Similar Workforces

The order directly affects dozens of commission vendors and bearers on the North Eastern Railway, but its ripple effects may extend to other zonal railways that have similar categories of workers. The judgment reminds all public sector undertakings that protracted litigation against low-paid workers will not be tolerated, and that courts are prepared to impose costs and monitor compliance. The Railways must now act swiftly to regularise the respondents and ensure that other similarly situated employees are not forced to litigate.

The case also raises broader questions about the treatment of contract and commission-based workers in government departments. The Delhi High Court’s strong language—characterising the situation as “deep regret” and “very disturbing”—may encourage other low-paid workers to approach tribunals for their rights.

Conclusion

The Delhi High Court’s decision in Union of India v. Mithai Lal and Ors is a significant victory for low-paid commission vendors and bearers who have waited decades for justice. By upholding the CAT’s order and directing swift compliance, the Court has reaffirmed the constitutional commitment to protecting weaker sections. As the four-week deadline looms, the Railways must now honour its long-standing promises or face contempt proceedings. The judgment stands as a reminder that the justice system will not allow administrative delays to defeat the legitimate entitlements of the most vulnerable workers.